- Entrepreneurs try to sell the Sharks on their made-in-America products. Business partners from Riverdale, UT believe they have created the perfect fire-starting solution; a couple from Webster Springs, WV want to sell their most popular restaurant item across the country; and two fitness buffs from Fargo, ND are confident their space-saving equipment will transform the way Americans work out at home.
- Sharks attending this session are Mark, Daymond, Kevin, Lori and Robert
"Insta-Fire" is a fire starter product that contains fewer chemicals. The entrepreneurs, Konel Banner and Frank Weston, seek a $300,000 investment for a 10% stake in their business. They claim that one cup of Insta-Fire can boil four cups of water in just 10 minutes. The product targets three main markets: emergency preparedness, fire starting, and barbecue starting. In the previous year, the company achieved $378,000 in sales, with a projected revenue of $850,000 for the current year. The production cost of Insta-Fire is 18.5 cents, while it wholesales for 74 cents and retails for $1.49. The product is patented, and the company has generated profits of $238,000. The entrepreneurs pay themselves $36,000 each. However, Robert decides to exit the deal, believing that the execution perfection is already priced into the valuation. Kevin offers $300,000 for a 33.3% equity stake. Daymond proposes $300,000 for a 20% stake and an additional 33.3% equity online. Mark and Lori also offer $300,000 for a 33.3% stake. Eventually, the entrepreneurs decide to accept Mark and Lori's offer.
"Custard Stand Food Products" specializes in hot dog chili. The entrepreneurs, Angie and Dee Cowger, are seeking a $400,000 investment for a 10% stake in their business. The company achieved sales of $1.6 million in the previous year and is currently available in Walmart and Sam's Club. They aim to expand their product nationally. The business generated a profit of $275,000. The entrepreneurs own one restaurant and five franchise locations, which are not included in the deal being offered. Daymond decides to pass on the opportunity as he believes that $400,000 is insufficient for a national roll-out, considering the need for research and development, testing, and advertising. Lori is uninterested due to the lack of spiciness in the chili. Robert also declines, expressing concerns about the challenges of taking a regional taste and scaling it nationally. Kevin and Mark both reject the deal based on valuation, but Mark commends the couple for their progress.
"PRx Performance" offers weightlifting and gym equipment designed for use in small spaces. The entrepreneurs, Brian Brasch and Erik Hopperstad, are seeking an $80,000 investment for a 10% stake in their business. The retail price for their rig is $1,100, with consumer prices starting at $550. Installation of the equipment must be done by the end user and takes approximately one to two hours. The product is patent pending, and the company has achieved sales of $170,000 year-to-date, with a gross margin of 43%. Mark decides not to invest, stating that the business is not suitable for him. Robert also opts out, citing concerns about the complicated installation process. Lori believes it is too early to invest and passes as well. Daymond believes the product lacks the ability to scale and declines the offer. Kevin offers $80,000 for a 20% stake, along with 20% of any future distributions. The entrepreneurs accept Kevin's offer.
"Rags to Raches" is a clothing line that specializes in one-piece rompers for children aged 0-5. The entrepreneur, Rachel Nilsson, is seeking a $200,000 investment for a 10% stake in her business. The company generated sales of $792,000 in the past 12 months, with 12% coming from wholesale and 88% from online channels. They achieved profits of $280,000. The production costs range from $7 to $12, while the selling prices range from $37 to $50. Rachel expresses her desire to expand into retail and seeks investment to support this expansion. Mark decides not to invest, as he believes Rachel contradicts herself by wanting to go into retail while agreeing to stick to online sales. Robert offers $200,000 for a 20% stake. Kevin proposes the same deal as Robert but with access to his wedding platform. Daymond offers $200,000 for a 20% stake, along with an offer to launch an inferior sub-brand and license it. Lori decides not to invest, as she believes Daymond is the best partner for Rachel. Ultimately, Rachel chooses to partner with Robert, aligning with her goal of expanding into retail.
An update on "Three Jerks Jerky" from Episode 705 is provided. The entrepreneurs, Jordan Barrocas and Daniel Fogelson, made a deal with Daymond for their gourmet beef jerky company. Since the episode aired, they sold $250,000 worth of product in one night and achieved $1.4 million in sales over the following four months. They have also acquired a new co-packer. It is worth noting that the products featured in this episode were made in the USA.
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